In the video, IS calls Australia a guard dog for the United States in the region.
IS foreign fighters previously in Iraq and Syria are being drawn to the Filipino city of Marawi, where the group has been fighting Filipino defence forces since May.
Australia has sent two planes to help the Filipinos in the fight.
Mr Turnbull is warning Marawi cannot be allowed to become another Raqqa, a reference to the Syrian city that has become the de facto IS capital.
